BAKU, Azerbaijan, November 4
By Tamilla Mammadova – Trend:
An International Monetary Fund (IMF) team led by Deputy Division Chief Mercedes Vera Martin visited Tbilisi from October 23 to November 4 to discuss the Fifth Review, a one-year extension and rephrasing of access under the Extended Fund Facility (EFF), Trend reports referring to the National Bank of Georgia.
The Fifth Review is part of a three-year program aimed at supporting economic reform in Georgia initiated in April 2017.
Georgian authorities and the IMF team reached a staff-level agreement on completing the fifth review under the reform program supported by an IMF Extended Fund Facility and extending the arrangement by one year, subject to approval by Management and the Executive Board.
Despite the deteriorating external environment, the Georgian economy has exhibited resilience, and sustained economic growth is expected in 2019-2020.
"Following productive discussions, the Georgian authorities and the IMF team reached a staff-level agreement on the Fifth Review under the EFF arrangement and on a one-year extension of the program. The agreement is subject to approval by the IMF management and the Executive Board. Consideration by the Executive Board is expected in December 2019.
Fifth Review will make $41.6 million available to Georgia, bringing total disbursements under the EFF arrangement to about $249.5 million, said Vera Martin.
According to the deputy division chief, economic growth in Georgia has proven resilient in the face of external shocks. In the first half of 2019, growth reached 4.7 percent year-on-year, with the current account deficit falling to a historic low (4.6 percent of GDP). Corporate credit and lari-denominated mortgages sustained credit growth.
"We project the growth at 4.6 percent in 2019, and 4.3 percent in 2020. Inflation is expected to decline to the 3-percent target by end-2020 as one-off factors dissipate, and monetary policy adjusts as needed. Risks to the outlook are to the downside, mostly driven by external developments," she said.
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